Monday, September 9, 2013
Nikkei Soars As Tokyo Chosen To Host 2020 Olympics
TOKYO (NQN)--Tokyo stocks opened sharply higher Monday after Tokyo was selected to host the 2020 Summer Olympic Games on Sunday morning, with the Nikkei Stock Average briefly surging more than 300 points to surpass 14,200.
It is the first time in a month that the benchmark index has topped that level during trading hours.
Investors are buying stocks on expectations of the medium- to long-term economic effects that come with hosting the international sporting event. Stocks of general contractors, including Taisei Corp. (1801) and Mitsui Fudosan Co. (8801), and property developers are rising.
Also pushing up Tokyo stocks is the government's GDP announcement before the bell. The Cabinet Office said the revised price-adjusted gross domestic product for the quarter ended June rose by an annualized 3.8%, up from the 2.6% growth on a preliminary basis.